The Kuwait Authority for Partnership Projects (KAPP) has – in collaboration with the Ministry of Electricity & Water & Renewable Energy (MEWRE) of Kuwait – issued requests for qualification (RFQs) to the developers/developer consortia for the Al Dibdibah Power and Al Shagaya Renewable Energy (Phase III) Zone 1 Solar PV Independent Power Project (IPP).
A renewable power facility, the Al Dibdibah Power and Al Shagaya plant lies within the administrative boundary of Jahra Governorate in the west of Kuwait City, approximately 100km from the capital. On completion, it will boast a net power capacity of 1,100MW. According to KAPP, the winning consortium will be responsible for the development, financing, design, procurement, engineering, construction, testing, commissioning, operation, maintenance as well as transfer of the key Al Dibdibah Power and Al Shagaya Renewable Energy project.
KAPP said the project will export the output from the plant to Kuwait’s electricity grid and transmission network. It will benefit from power purchase agreement (PPA) with MEWRE as the off taker for a 30-year term.
As the main body responsible for implementation of the public-private-partnership projects, KAPP aims to utilise private sector skills and expertise to maximize value for money and service quality.
Developers of the Project
Both KAPP and Ministry of Electricity & Water & Renewable Energy were assisted in the project by Ernst & Young as lead and financial advisor, DLA Piper as legal advisor and DNV as technical and environmental advisor.
As the main body responsible for implementation of the public-private-partnership projects, KAPP aims to utilise private sector skills and expertise to maximize value for money and service quality.It is currently in the process of initiating several high-impact projects in the power, water/wastewater, education, health, transportation, communications, real estate, and solid waste management sectors.
Significance of the Project
KAPP pointed out that following its completion, the project will benefit from power purchase agreement with Ministry of Electricity & Water & Renewable Energy. as the off taker for a 30-year term.It will export the output from the plant to Kuwait’s electricity grid and transmission network.
Both KAPP and Ministry of Electricity & Water & Renewable Energy were assisted in the project by Ernst & Young as lead and financial advisor, DLA Piper as legal advisor and DNV as technical and environmental advisor.
This significant step aligns with Kuwait’s commitment to embracing clean energy and marks a strategic move towards reducing reliance on conventional power sources. The qualification process signals a new era for the private sector involvement in Kuwait’s renewable energy landscape.
Main Objectives of the Al Dibdibah Power and Al Shagaya Renewable Energy Projects
- Introduce private sector practices and capital to traditionally public sector-controlled domains.
- Alleviate the financial and operational burden from the Ministry of Electricity & Water & Renewable Energy.
- Decrease dependence on fossil fuels, reducing overall power generation costs.
- Enhance renewable energy capacity in Kuwait’s energy mix
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